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Mumbai/Bangalore, Nov. 12 The HP-3Com combine has the potential to become the second largest player in India’s enterprise networking market and prompt other players in this segment to evolve aggressive growth strategies.

The deal may also set the alarm bells ringing for companies such as Juniper, DAX, BA Systems, D-Link, etc., which individually have single digit market shares in India, a cross-section of industry analysts told Business Line.

However, it may not threaten Cisco’s market leadership here, at least in the near term, given that it has over 60 per cent of the pie, said Mr Nareshchandra Singh, Principal Research Analyst at Gartner.

A spokesperson for Cisco India said: “While Cisco has healthy respect for all of our competitors, acquisitions in our industry only validate the fact that networking is becoming the platform for all forms of communications and IT.”

Though 3Com’s share of the India pie is quite small, this acquisition signals that HP is getting more focused on this segment within the country, said Mr Praveen Bhadada, Engagement Manager, Zinnov Management Consulting.

India has been a fast growing market for networking equipment in the context of the telecom boom.

Globally, this deal could be the first in this fresh round of consolidation among various players. “We see more scope for mergers and acquisitions and consolidation as the top five players in this space have major part of the pie while others have very little pull in the market,” said Mr Suryadev Goswami, Manager, Communications Research, IDC India.

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